Skyservice grounded in latest Canadian aviation development

While reading the coverage of Skyservice’s sudden collapse, we can’t help but wonder if the people running the charter air service shared a few sheepish face palms. In addition to explaining that key shareholders, Gibralt Capital and Sunquest Vacations, called in their loans (sending the airline into receivership and laying off more than 1,000 employees), Canwest reports: “Skyservice’s costs were 30 to 40 per cent higher than its competitors Canjet, WestJet and Sunwing. About 74 per cent of its workforce was unionized, and it flew older, less efficient planes than its rivals.” So that’s how to run a business—if not an airplane—into the ground.

For those hoping to be stranded a few extra days in tropical locations because of the airline’s failure, it’s unlikely. According to reports, Skyservice’s main clients, Sunquest and Signature Vacations, have arrangements to take care of travellers who had been booked on Skyservice flights.

Maybe if Skyservice, which is either 15, 25 or 33 years old, depending on the source, had tried to weasel its way into the island airport, its fortunes would have been better. Though, as Air Canada is finding out, that’s easier said than done.